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The research reports here, excerpted and edited by Barron's, were issued recently by investment and research firms. Many may be obtained through Thomson Reuters at thomson.com/financial or 800-638-8241. Some are available in the company-research area of WSJ.com, or through Factiva.com. Some of the reports' issuers have provided, or hope to provide, investment-banking or other services to the companies being analyzed.

In particular, our view is that at the current price, investors are paying very little for its security business, which is unjustified. IR Security is worth $15 per share in equity value in our SOTP valuation. Low penetration and the growing popularity of automated locks provides a solid backdrop for organic growth, and solid barriers to entry should protect margins as the business scales.

Zillow
• Z-Nasdaq Buy • Price $62.94 on May 7 by Canaccord Genuity The residential real-estate Website continues to show strength across the board as its premier agent (selling and renting), mortgage, and display (advertising) businesses all showed very strong growth.

Zillow's game plan is working as consumers and real-estate professionals increasingly move online and consolidate on a small group of platforms, of which Zillow is the leader. Management is pressing its bet, marketing itself more to drive user growth and brand, which should ultimately yield a larger business.

While our revenue estimates are going up by 6%, to 10%, for 2013-15, we are shifting to a more conservative margin outlook. Factoring in higher marketing spending, our earnings-per-share estimates for 2013/14/15 go from 35 cents/$1.11/$1.48 to a loss of four cents/55 cents/94 cents. Our new target price: $65, up from $60.

Adjusted operating margin of 19.9% (-90 basis points, or down 0.9 percentage points Y/Y) was about in line with our 20.1% estimate. This represents the high end of management's continuing targeted range of 19% to 20%. Revenue guidance for 2013 was at least $8.6 billion (+17% Y/Y). We were at +17% (consensus was at +18%). And 2013 GAAP [generally accepted accounting principles] EPS guidance was at least $3.95 (we were at $3.96; consensus, $3.99).

We expect a mild rally, maybe 2% to 5%, as the first-quarter earnings release clears up any overhang associated with fears around a guide-down. Target price: $92.

We believe that market concerns are overblown. We continue to project only a negligible impact on 2014 Ebitda [earnings before interest, taxes, depreciation, and amortization] from proposed regulatory reforms, and we see TV as protected by high barriers to entry in its content business, given its proven ability to produce programming that is consistently watched by about 70% of Mexico's prime-time audience and by a growing audience in the U.S. and elsewhere. Finally, although first-quarter 2013 results were weak, comparisons will get much easier throughout 2013, and this could act as a catalyst.

Although we are trimming estimates to reflect weak first-quarter 2013, the recent pullback has created an attractive entry point, and we upgrade to Overweight from Equal Weight. We raise our price target to $32 per American Depositary Receipt from $30 to reflect higher media peer valuations. We continue to see excellent long-term value in the shares.

We are encouraged by this acquisition, which expands AET's geographic presence and, we believe, its competitive position and growth prospects in the commercial, Medicare, and Medicaid markets. We expect it to also benefit from improved economies of scale and Coventry's cost-control focus. We also see higher free-cash-flow generation, which should provide AET with improved financial flexibility.

TransDigm GroupTDG -2.483501893865438%TransDigm Group Inc.U.S.: NYSEUSD249.73
-6.36-2.483501893865438%
/Date(1481234495965-0600)/
Volume (Delayed 15m)
:
749879AFTER HOURSUSD249.73
%
Volume (Delayed 15m)
:
1290
P/E Ratio
25.665981500513876Market Cap
13661889015.2203
Dividend Yield
N/ARev. per Employee
341012More quote details and news »TDGinYour ValueYour ChangeShort position
• TDG-NYSE Gradually Accumulate • Price $150.13 on May 7 by Wellington Shields The highly engineered, specialty-aerospace-components company produced second-quarter 2013 adjusted EPS of $1.74 (versus a comparable $1.65 a year earlier), a penny over our forecast. Organic revenue growth was about 2%. Revenue, at $466 million, was $4 million above our expectations. The company's margins are typically helped by a solid bump-up in pricing in the year after an acquisition, as well as from cost take-outs at acquired companies. The period includes results from acquired Aero-Instruments and AmSafe. GAAP net income was $68 million for reported EPS of $1.25 (versus $82 million or $1.51).

Our 12-month price target is now $178 (up from $172), based on the shares reaching 24 times the forward EPS estimate.

Given yield compression, a relatively high impact of fee income included in first-quarter 2013, and slower portfolio-growth assumptions, we are lowering our 2013 NII per-share estimate to $2.35 from $2.42 and 2014 to $2.56 from $2.62. We are maintaining our Overweight rating, as SLRC carries a 10% yield and is trading at a modest premium to book. But we are becoming increasingly concerned about potential balance-sheet shrinkage and the impact to earnings. Target price: $26.

Ensign Energy ServicesESI.T -0.211864406779661%Ensign Energy Services Inc.Canada: TorontoCAD9.42
-0.02-0.211864406779661%
/Date(1481234400000-0600)/
Volume (Delayed 15m)
:
102151
P/E Ratio
N/AMarket Cap
1444886312.72659
Dividend Yield
5.095541401273885% Rev. per Employee
206537More quote details and news »ESI.TinYour ValueYour ChangeShort position
• ESI-Canada Hold • Price C$15.58 on May 8 by Cowen Securities Ensign's Canadian drilling utilization was adversely affected by competitors' aggressive pricing. The company attempted to maintain higher pricing levels but was largely unsuccessful, and ceded market share in the quarter. As a result, we expect it to be more assertive in the coming months, which should result in higher utilization levels but likely at lower day rates.

We are lowering our 2013-14 EPS estimates to $1.10/$1.40 from $1.25/$1.55 to reflect slightly lower activity levels and a weaker pricing environment as the fight for market share intensifies in North America.

Time WarnerTWX 0.6065120238348585%Time Warner Inc.U.S.: NYSEUSD94.55
0.570.6065120238348585%
/Date(1481234589083-0600)/
Volume (Delayed 15m)
:
5468050AFTER HOURSUSD94.3
-0.25-0.26441036488630354%
Volume (Delayed 15m)
:
P/E Ratio
16.793960923623445Market Cap
72470800447.5189
Dividend Yield
1.702802749867795% Rev. per Employee
1149440More quote details and news »TWXinYour ValueYour ChangeShort position
• TWX-NYSE Outperform • Price $61.26 on May 8 by Barrington Research The spinoff of Time Inc. will place even greater focus on the importance of television within the Time Warner business mix. The cable networks—HBO (Home Box Office and Cinemax on the premium side) and Turner Networks (TNT, TBS, CNN, Cartoon Network, and others on the basic side) remain by far the largest generators of operating profits, a status that will be increased by the separation of publishing. The networks currently provide about 80% of the operating income generated by the two sectors that will continue within the Time Warner structure. The other business element is Warner Bros. While the WB identity is largely derived from its theatrical releases, the actual fairly even balance between films and television content means the overall content and distribution mix for Time Warner in its new form will be roughly 90% television-based.

We are raising our 2013-based target price to $67 from $61, which has now been achieved. Our target reflects a blend of multiples for the three business lines. In addition, the annual dividend rate is currently $1.15, providing a 1.9% yield. Time Warner returned over $900 million to shareholders in the form of dividends ($273 million) and share repurchases ($672 million) in the first period.